Appendix E: Tax Expenditure and Concessional
Charges Statement
Tax expenditure is revenue forgone by granting more favourable tax treatment to certain
individuals or groups than applies to taxpayers in general. Concessions involve providing
government goods and services to certain users at a lower charge than applies to the wider
community. Tax expenditures and concessions have the same fiscal impact as normal budget
expenditure.
There is an element of judgement in deciding what constitutes a tax expenditure or concession,
and what constitutes a structural feature of the underlying taxation or service delivery system.
For example, stamp duty on property transfers is charged at different marginal rates according to
the value of the property involved. This could be seen as providing a concessional rate of
taxation for lower valued properties. However, in this appendix these lower marginal rates are
not classified as tax expenditures. Rather, the different rates are regarded as a design feature of
the duty arrangements.
Similarly, providing a good or service at lower rates to certain members of the community
depending on their income is not classed as providing a concession. Rather, the different rates
are classified as a design feature of the pricing arrangements. For instance, public transport is
generally provided at different rates to adults and children. The children’s rate is not classified
in this appendix as a concession, but is a design feature of the pricing arrangements
(although children receiving an exemption from the normal children’s fare would be a
concession).
There is also judgement in deciding what concessions are funded by explicit Budget payments.
Concessions are included where the forgone agency revenue is supplemented from the Budget
through social policy program payments. These concessions are included to make the total cost
of the concession apparent, regardless of whether an intra-government transfer offsets the cost
of the concession for the agency concerned.
Caution should be exercised when using these estimates. In particular, inter-jurisdictional
differences in tax expenditures and concessions may result from different definitions of which
elements of the tax and charging system are tax expenditures and concessions, and which
elements are structural features.
The benchmark used in determining the cost of the tax expenditures and concessions is the
standard tax rate or charge that applies in each instance.
Budget Statement 2011-12
E-1
Detailed Estimates of Tax Expenditures
Transfer Duty (including “Landholder” Duty)
The benchmark tax rates for Purchaser Transfer Duty (other than for the Crown in right of
New South Wales or the Commonwealth) are:

for transfers relating to the purchase of non-residential property, the benchmark tax rate is
defined against marginal tax rates varying from 1.25 to 5.5 per cent; and

for transfers relating to the purchase of residential property, the benchmark tax rate is
defined against marginal rates varying from 1.25 to 7 per cent.
From 1 July 2012 transfer duty on non-land business assets will be abolished.
Major Tax Expenditures1
2009-10
$m
2010-11
$m
2011-12
$m
166
484
291
35
36
35
3
5
5
458
327
200
100
124
125
Business
Corporate reconstructions
An exemption is granted, provided certain qualifying criteria are
satisfied.
Charitable organisations
An exemption is granted where the property is to be used for approved
charitable purposes.
Government
Councils and County Councils
The transfer of property to a council or county council is exempt
under the Local Government Act 1993.
Individuals
First Home Plus/First Home Plus One
From 1 January 2012, First Home Plus will be targeted at first home
buyers who buy a newly constructed home valued up to $600,000.
Transfers of matrimonial property consequent upon divorce
An exemption is granted under the Family Law Act 1975 (Cth) or
partnership property under the Property (Relationships) Act 1984.
1
E-2
For reference purposes, where “n.a.” appears in tables this means a tax expenditure estimated to cost
more than $1 million but not able to be costed due to the lack of available data. Where the table includes
an ellipsis (…) this means the tax expenditure has a zero value in that year.
Budget Statement 2011-12
Major Tax Expenditures1
2009-10
$m
2010-11
$m
2011-12
$m
Home Builders Bonus Transfer Duty Concession
Provides an exemption to newly constructed dwellings up to
$600,000 purchased ‘off the plan’ and a 25 per cent concession if
construction has commenced, until 30 June 2012.
…
146
60
34
40
41
32
22
6
1
…
1
n.a.
n.a.
n.a
n.a.
n.a.
n.a
n.a.
n.a.
n.a
n.a
n.a
n.a
4
19
10
n.a.
n.a.
n.a
…
5
20
Transfer of residences between spouses or de facto partners
An exemption is granted, subject to the property being their principle
place of residence and the property jointly held after transfer.
Housing Construction Acceleration Plan
Provides a concession of 50 per cent for newly constructed properties
up to $600,000 until 30 June 2010.
Transfer of property from companies and trusts to individuals
An exemption is granted for transfer of a principal place of residence
from a corporation or a special trust to certain individuals, or the
transfer of any land owned by a special trust since 11 September
1990 to certain persons.
‘Off the plan’ purchases
Duty may be deferred until completion of the sale or 12 months after
the contract.
Transfer of property of deceased to persons entitled to the property in
the estate
Concession on the transfer of property in connection with persons
changing superannuation funds
Transfer of property from owner to their self managed superannuation
fund
Other
Other Legislation
An exemption is granted for certain transfers of dutiable property
contained in other legislation.
Nominal duty payable on the transfer of properties as a result of a
change in trustees
Pensioners/concession cardholders/disadvantaged
Over 55s Transfer Duty Concession
Provides an exemption for newly constructed dwellings up to
$600,000 for those over 55. Up til 30 June 2011, anyone aged 65 or
over was eligible.
From 1 July 2011, the eligibility for this exemption was widened to
include anyone aged 55 years or older.
Budget Statement 2011-12
E-3
Major Tax Expenditures1
2009-10
$m
2010-11
$m
2011-12
$m
Rural
Intergenerational rural transfers
An exemption is granted for transfers of rural land used for primary
production between generations, and between siblings, to facilitate
young family members taking over the family farms.
13
10
9
Minor Tax Expenditures (< $1 million)

A person who has sold their property to a local government council because the home was
built on flood-prone land, and has since purchased another home may pay purchaser transfer
duty by instalment, over a five-year period.

Certain instruments relating to superannuation are subject to nominal duty.

A credit of purchaser transfer duty previously paid is applied to amalgamations of certain
Western Lands leases.
The following are exempt from transfer duty:

transfers of legal title to poker machine permits where there is no change in beneficial
ownership

Equity Release Scheme – approved equity release schemes for aged home owners

certain purchases of manufactured relocatable homes (caravans)

transfers of property in a statutory trust as a result of an order under Section 66G of the
Conveyancing Act 1919

the vesting of common property in a body corporate on the registration of a strata plan or
strata plan of subdivision under the Strata Schemes (Freehold Development) Act 1973 or the Strata
Schemes (Leasehold Development) Act 1986

call option assignments, subject to certain conditions

certain transfers to incorporated legal practices or incorporated pharmacy practices

transfer of a liquor licence in certain circumstances under the Liquor Act 2008

transfer of property related to allocating funds for water saving projects

duty concession for an acquisition of an interest in a landholder for the purpose of securing
financial accommodation

concession for buy-back arrangements related to unit trust schemes that meet certain criteria

a principal place of residence by tenants of the Housing NSW, the Community Housing
Program administered by the Housing NSW and the Aboriginal Housing Office

transfers back to a former bankrupt by trustee of his or her estate
E-4
Budget Statement 2011-12

transfers by way of mortgage or discharge of mortgage of old system titled properties

transfers where public hospitals are the liable party

transfers of properties gifted to a special disability trust

instruments executed by or on behalf of a council or county council under the Local
Government Act 1993, not connected with a trading undertaking

transfers executed for the purpose of amalgamation of clubs under the Registered Clubs
Act 1976

instruments executed by or on behalf of agencies within the meaning of the Convention on
the Privileges and Immunities of the Specialised Agencies approved by the General
Assembly of the United Nations in 1947

transfers between associations of employees or employers registered under the Workplace
Relations Act 1996 (Cth) for the purpose of amalgamation

transfer of property to the NSW Aboriginal Land Council, Regional Aboriginal Land
Council, or Local Aboriginal Land Council

transfers of property between licensed insurers, and between the WorkCover Authority and
licensed insurers, under the Workers Compensation Act 1987.
General Insurance Duty
The benchmark is defined as all premiums for general insurance policies, except insurance
covering property of the Crown in right of New South Wales. The benchmark tax rate is
9 per cent of premium paid.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
257
269
280
10
11
11
n.a.
n.a.
n.a
Business
Exemption for WorkCover premiums
Marine and cargo insurance
Exemption for marine insurance covering hulls of commercial ships
and the cargo carried by land, sea or by air.
Government
Exemption for non-commercial ventures of local councils
Budget Statement 2011-12
E-5
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
235
249
258
145
158
167
n.a.
n.a.
n.a
Individuals
Concessional rates for Types B and C general insurance, as identified in
Section 233 of the Duties Act
A concessional rate of 5 per cent applies to certain categories of
general insurance, including motor vehicle (excluding compulsory
third party), aviation, disability income, occupational indemnity and
hospital and ancillary health benefits (where not covered by private
health insurer). Crop and livestock insurance is taxed at a
concessional rate of 2.5 per cent.
Compulsory third party motor vehicle insurance
Exemption for third party motor vehicle personal injury insurance
(green slip), as per the Motor Accidents Act 1988 and the Motor
Accidents Compensation Act 1999.
Exemption for medical benefits insurance
Minor Tax Expenditures (< $1 million)
The following are exempt:

insurance by non-profit charities, benevolent, philanthropic, patriotic organisations and
societies or institutions whose resources are used wholly or predominantly for the relief of
poverty, the promotion of education, any purpose directly or indirectly connected with
defence or the amelioration of the condition of past or present members of the naval,
military or air forces of the Commonwealth or their dependants; or any other patriotic object

insurance by the NSW Aboriginal Land Council, Regional Aboriginal Land Council and
Local Aboriginal Land Council

insurance covering mortgages or pools of mortgages acquired for issuing mortgage backed
securities

separate policies covering loss by fire of tools, implements of work or labour used by any
working mechanic, artificer, handcrafter or labourer

redundancy insurance in respect of a housing loan that does not exceed $124,000

reinsurance.
E-6
Budget Statement 2011-12
Life Insurance Duty
The benchmark is defined as all products (or part thereof) where the sum assured offered by life
insurance companies provides for a payment in the event of death or injury from natural causes
of the person insured or upon survival to a specified age. The benchmark tax rate is $1 on the
first $2,000 and 20 cents for every $200 in excess of this amount.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
135
154
163
19
20
22
Individuals
Superannuation
An exemption is granted to all group superannuation investment
policies that are for the benefit of more than one member.
Annuities
An exemption is granted to annuities.
Mortgage Duty
Mortgage duty on advances made for owner occupied housing was abolished from 1 September
2007 and mortgage duty on advances made for investment housing was abolished from
1 July 2008.
Mortgage duty on all other advances will be abolished from 1 July 2012.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
86
143
130
n.a.
n.a.
n.a
Business
Refinanced loans where the borrower and the security for the loan
remain the same
A mortgage that secures the amount of the balance outstanding for
the same borrower and on the same property as under an earlier
mortgage is exempt to a limit of $1 million. Any additional amount
above the lesser of the previously secured amount or $1 million is
liable for duty.
Mortgage-backed securities
An exemption is granted for financial institutions using pooled
mortgages from their lending assets as security for borrowing funds.
Budget Statement 2011-12
E-7
2009-10
$m
2010-11
$m
n.a.
n.a.
n.a
from loans (secured and unsecured).
n.a.
n.a.
n.a
Consumer credit contracts up to $35,000
n.a.
n.a.
n.a
Instruments creating, issuing or marketing mortgage-backed securities
n.a.
n.a.
n.a
Major Tax Expenditures
2011-12
$m
Fund raisings by finance companies through debenture issues
An exemption is granted to companies whose sole or principal
business is to provide finance to the public. Debentures issued, trust
deeds and mortgages executed by “financial corporations” as defined
in the legislation are not liable to duty. However, the trust deed is
stamped as a Declaration of a Trust.
Loan-backed securities
An exemption is granted to securities issued backed by cash flow
Minor Tax Expenditures (< $1 million)
The following are exempt:

duty is not charged on additional loans secured under a mortgage if the additional loans do
not exceed $10,000 in any 12 month period, excluding the 12 month period that follows the
making of the initial loan

mortgages created solely for the purpose of providing security in accordance with a
condition imposed on the grant of bail in criminal proceedings

a mortgage of any ship or vessel, or of any part, interest, share or property of or in any ship
or vessel

any mortgage made or given to the WorkCover Authority

mortgages given by a council or county council under the Local Government Act 1993

mortgages given by institutions for the relief of poverty and promotion of education

mortgages given by institutions of charitable or benevolent nature, or for the promotion of
the interests of Aborigines

mortgages given by the NSW Aboriginal Land Council, Regional Aboriginal Land Council
and Local Aboriginal Land Council

offshore banking units (as defined in the Income Tax Assessment Act 1936 (Cth)) where a loan
is executed for offshore parties

mortgages by public hospitals

an agricultural goods mortgage under the Security Interests in Goods Act 2005
E-8
Budget Statement 2011-12

a mortgage that secures an amount advanced by an employer or a related body corporate of
an employer to an employee of the employer, to finance a purchase by the employee of
shares in the employer, or a related body corporate of the employer, if the amount advanced
(and the total of all advances that the mortgage secures) does not exceed $16,000

agencies within the meaning of the Convention on the Privileges and Immunities of the
Specialised Agencies approved by the General Assembly of the United Nations in 1947

mortgages by clearing houses of the Sydney Futures Exchange and Australian Options
Market that do not secure an advance

a document that becomes a mortgage if the mortgage is executed for the purposes of certain
money market operations

a charge over land that is created under an agreement for the sale or transfer of the land if
any part of the deposit or balance of the purchase price for the land is paid to the vendor
(or as the vendor directs) before completion of the sale or transfer

an advance to a natural person or a strata corporation for the acquisition of farm machinery
or a commercial vehicle that is secured by the mortgage.
Marketable Securities Duty
The benchmark is defined as the turnover (sale price x quantity traded) of shares, units,
derivatives and interests that are not quoted on the Australian Stock Exchange or a recognised
stock exchange. The benchmark tax rate is 60 cents per $100 or part thereof, with the purchaser
paying the duty.
From 1 July 2012, unquoted marketable securities will be abolished.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
Corporate reconstructions
An exemption is granted, provided certain qualifying criteria are
satisfied.
108
97
105
Minor Tax Expenditures (< $1 million)

Nominal duty is charged on the transfer of unquoted marketable securities between the
beneficial owner and the trustee or nominee of the beneficial owner. Concessional duty is
charged on the transfer of unquoted marketable securities in connection with persons
changing superannuation funds.
Budget Statement 2011-12
E-9
The following transfers are exempt:

transfers of units in a unit trust where the purpose is to give effect to a merger or takeover of
qualifying unit trusts

share buy-backs by NSW companies

mining companies whose operations relate solely to New South Wales if the consideration
for the transfer or agreement is not less than the unencumbered value of the marketable
securities

transfers to parties outside a marriage where the transfer is pursuant to an order of the
Family Court of Australia

transfers made to give effect to a scheme that would qualify for rollover under subdivision
124-Q of the Income Tax Assessment Act 1997.
Motor Vehicle Stamp Duty
The benchmark taxable activity is defined as the purchase of a new vehicle or the subsequent
transfer of the vehicle. The benchmark tax rate is $3 per $100 or part thereof for passenger
vehicles valued up to $45,000. For vehicles valued over this amount, the benchmark is
$1,350 plus $5 per $100 above the $45,000 threshold.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
New demonstrator motor vehicle
An exemption is granted to a licensed motor dealer or wholesaler
under the Motor Dealers Act 1974.
47
55
57
15
18
19
7
7
7
2
2
3
Individuals
Caravans and Camper Trailers
Transfer of ownership of a deceased registered owner
An exemption is granted for the transfer of registration to a
nominated legal personal representative or the person beneficially
entitled to the vehicle in the estate.
Transfer of ownership after divorce or a breakdown of a de facto
relationship
An exemption is granted for the transfer of registration into the name
of one of the parties to a divorce or separation in a de facto
relationship.
E - 10
Budget Statement 2011-12
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Government
Local councils
An exemption is granted for the transfer of registration into the name
of a local council, not being for a trading undertaking.
10
11
11
2
2
2
Pensioners/concession cardholders/disadvantaged
Vehicles purchased by war veterans and impaired members of the
Defence Force
An exemption is granted to war veterans in receipt of a totally and
permanently incapacitated (TPI) pension, veterans in receipt of an
extreme disablement adjustment pension, an intermediate service
pension or 70 per cent or higher of the disability pension from the
Department of Veterans’ Affairs. Current or former members of the
Defence Force, adjudged as being impaired and eligible, or in receipt
compensation or special rate disability pension are also eligible.
Minor Tax Expenditures (< $1 million)
The following are exempt:

all vehicles registered by non-profit charitable, benevolent, philanthropic or patriotic
organisations

transfer of vehicles as part of a corporate reconstruction, provided certain qualifying criteria
are satisfied

vehicles specially constructed for ambulance or mine rescue work

vehicles weighing less than 250 kg used for transporting invalids

vehicles registered by a Livestock Health and Pest Authority (established under the
Rural Lands Protection Act 1998)

vehicles registered by NSW Aboriginal Land Council, Regional Aboriginal Land Council and
Local Aboriginal Land Council

a duty concession applies to vehicles modified for use by disabled persons

if the motor vehicle is to be registered conditionally under Road Transport (Vehicle Registration)
Act 1997.
Budget Statement 2011-12
E - 11
Payroll Tax
From 1 July 2011 to 30 June 2012, the payroll tax benchmark is defined as aggregate annual
gross remuneration paid by a single or group taxpayer in excess of a threshold of $678,000.
The benchmark tax rate, effective from 1 January 2011 is 5.45 per cent.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
Apprentices
All not-for-profit group training apprentice schemes are fully exempt.
All other employers employing apprentices will be eligible for a full
rebate of tax on apprentice wages.
51
50
52
34
33
35
16
16
17
11
11
11
7
7
7
79
81
85
Trainees
All not-for-profit group training traineeship schemes are fully exempt.
All other employers employing trainees will be eligible for a full
rebate of tax on trainee wages.
Private hospitals and nursing homes
An exemption is granted for wages paid to a person engaged
exclusively in work of a kind ordinarily performed in connection with
the conduct of these organisations.
Maternity Leave
An exemption is granted for maternity leave payments for a period of
up to 14 weeks.
Redundancy payments
Bona fide redundancy or approved early retirement scheme payments
are exempt.
Charitable organisations
Charitable institutions
An exemption is granted for wages paid by a non-profit organisation
(other than an instrumentality of the State) whose sole or dominant
purpose is charitable, benevolent, philanthropic or patriotic, to an
employee engaged exclusively in work of a kind ordinarily performed
in connection with these institutions.
E - 12
Budget Statement 2011-12
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
499
513
535
192
198
206
162
163
171
9
9
10
42
43
45
Government
Public hospitals, Local Health Districts (formerly Area Health Services)
and Ambulance Service of NSW
An exemption is granted for wages paid to a person engaged
exclusively in work of a kind ordinarily performed in connection with
the conduct of these organisations.
Local councils
An exemption is granted to a council or county council, including a
wholly owned subsidiary of a council and public markets, except
where wages are paid in connection with a number of trading
undertakings: such as the supply of electricity or gas, water, sewerage
services, parking station, hostel or coal mine. A full list of trading
undertakings is outlined in the Payroll Tax Act 2007.
Schools and colleges
An exemption is granted to a school or college (other than a technical
school or a technical college), that is not carried on by or on behalf of
the State of New South Wales, is not for profit and which provides
education at or below, but not above, the secondary level of
education.
Home Care Service
An exemption is granted to employees of the Home Care Service.
Religious institutions
Religious institutions
An exemption is granted for wages paid to a person while engaged
exclusively in work of a kind ordinarily performed in connection with
these institutions.
Minor Tax Expenditures (< $1 million)
The following are exempt:

wages paid to an employee who is on leave from employment by reason of service in the
Defence Forces

wages paid to persons employed under the Community Development Employment Project
administered by Aboriginal and Torres Strait Islander Corporations

wages paid by the Australian-American Fulbright Commission

wages paid by the Commonwealth War Graves Commission
Budget Statement 2011-12
E - 13

wages paid to members of the official staff by a consular or other non-diplomatic
representative of another country or by a Trade Commissioner representing in Australia any
other part of the Commonwealth of Nations

wages paid for a joint government enterprise that has the function of allocating funds for
water saving projects

wages paid by the Governor of a State

wages paid to employees while the employees are providing volunteer assistance to the
State Emergency Services or Rural Fire Brigades (but not in respect of wages paid or payable
as recreation leave, annual leave, long service leave or sick leave)

an exemption is provided for adoption leave payments for a period of up to 14 weeks

an exemption is provided for paternity leave payments for a period of up to 14 weeks.
Land Tax
The benchmark tax base is defined as the average of the last three years unimproved land value
of all land owned, as at 31 December of the previous year, that is above the indexed threshold
for that year (as defined in the Land Tax Management Act 1956). The primary exceptions to this are
land used for owner-occupied residences, and land owned by the Commonwealth or NSW
Governments.
The benchmark tax rate for the 2011 land tax year is $100 plus 1.6 per cent of the land value
between the thresholds of $387,000 and $2,366,000, and 2 per cent thereafter.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
Racing clubs
An exemption is granted for land owned by or held in trust for any
club for promoting or controlling horse racing, trotting or greyhound
racing which is used primarily for the purposes of the meetings of the
above.
8
8
8
3
3
3
9
9
9
Employer and employee organisations
An exemption is granted for land owned by or held in trust for
employer and employee organisations for that part that is not used
for a commercial activity open to members of the public.
Co-operatives
An exemption is granted for land owned by a co-operative under the
Co-operatives Act 1992 (NSW) which has any of the objectives listed in
Section 7 of that Act.
E - 14
Budget Statement 2011-12
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Child care centres and schools
An exemption is granted for land used as a residential child care
centre licensed under the Children and Young Persons (Care and
Protection) Act 1998 or a school registered under the Education Act
1990.
4
4
4
n.a.
n.a.
n.a
n.a.
n.a.
n.a
n.a.
n.a.
n.a
14
14
15
18
18
19
Land owned and used by a local council
n.a.
n.a.
n.a
Public authorities representing the Crown
n.a.
n.a.
n.a
n.a.
n.a.
n.a
n.a.
n.a.
n.a
20
18
19
Charitable organisations
Friendly societies
An exemption is granted for any society registered under the Friendly
Societies (NSW) Code.
Non-profit societies, clubs and associations
An exemption is granted for a building (or part thereof) occupied by a
society, club or association and not carried on for pecuniary profit of
members.
Charitable and educational institutions
An exemption is granted for land owned by or in a trust for a
charitable or educational institution if the institution is carried on
solely for charitable or educational purposes and not for pecuniary
profit of members.
Government
Public cemeteries and crematoriums
An exemption is granted for any land used as a public cemetery or
crematorium.
Public and private hospitals and Local Health Districts
An exemption is granted for land used by a public hospital (including
nursing homes) or Local Health District.
NSW Aboriginal Land Councils, Regional Aboriginal Land Councils and
Local Aboriginal Land Councils
Land leased for use as a fire brigade, ambulance or mines rescue
station
Individuals
Early payment discount
A discount of 1.5 per cent on land tax payable is available where the
taxpayer pays the whole amount within 30 days after issue of the
notice of assessment.
Budget Statement 2011-12
E - 15
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
n.a.
n.a.
n.a
n.a.
n.a.
n.a
n.a.
n.a.
n.a
100
103
106
7
7
7
13
13
13
n.a.
n.a.
n.a
396
408
420
Other
Public gardens, recreation grounds and reserves
An exemption is provided for land used as a public garden, public
recreation ground or public reserve.
Sporting clubs
An exemption is provided for land owned by or in a trust for any club
or body of persons where the land is used primarily for the purpose
of a game or sport and not used for pecuniary profit of the members
of that club or body.
Sydney Light Rail
An exemption is provided in respect of the land occupied by the
Sydney Light Railway.
Pensioners/concession cardholders/disadvantaged
Retirement villages
An exemption is granted for land used as retirement villages, and
residential parks predominantly occupied by retired persons.
Boarding houses for low-income persons
An exemption is granted for land used for boarding houses in which
meet the rent charged is less than the amount prescribed by the
guidelines.
Religious institutions
Religious societies
An exemption is provided for land owned by or in trust for a religious
society if the society is carried on solely for religious, charitable or
educational purposes.
Place of worship or residence
An exemption is provided for a place of worship for a religious
society, or a place of residence for any clergy or ministers or order of
a religious society.
Rural
Land used for primary production
An exemption is granted for any land where the dominant use is for
primary production purposes. In urban zones this is limited to land
used for primary production for the purpose of profit on a continuous
or repetitive basis. This excludes some land such as hobby farms.
E - 16
Budget Statement 2011-12
Major Tax Expenditures
2009-10
$m
2010-11
$m
n.a.
n.a.
2011-12
$m
Agricultural showgrounds
An exemption is granted for land used and occupied for the purpose
of holding agricultural shows, or shows of a like nature and owned
by, or held in trust for, a society which is established for the purpose
of holding such shows not for the pecuniary profit of its members
and primarily uses its funds for the holding of such shows.
n.a
Minor Tax Expenditures (< $1 million)

Concession for unoccupied flood liable land.
The following are exempt:

low cost accommodation within 5 km of Sydney GPO

Primary Products Marketing Boards, Livestock Health and Pest Authorities and Agricultural
Industry Service committees

temporary absences from a home, including circumstances where a home has been destroyed
due to fire, storm, earthquake, accidental or malicious damage

community land development

land subject to a conservation agreement under the National Parks and Wildlife Act 1974 or a
trust registered under the Nature Conservation Trust Act 2001, being in either case an
agreement that remains in force in perpetuity

land owned, held in trust or leased by the Nature Conservation Trust of NSW, or land
subject to a permanent conservation or trust agreement

land that is the subject of a biobanking agreement

land owned by a joint government enterprise that has the function of allocating funds for
water saving projects

land used solely as a police station

land owned by RSL (NSW Branch), being Anzac House

principle place of residence of a person with a disability, in a Special Disability Trust.
Budget Statement 2011-12
E - 17
Vehicle Weight Tax
The benchmark is defined as all vehicles intended for on-road use, with the exception of
Commonwealth Government vehicles which, for constitutional reasons, do not form part of the
tax base. The benchmark tax rate is as defined in the Motor Vehicles Taxation Act 1988 (NSW)
for private and business vehicles.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
General purpose plant
Concessions are provided for machines that cannot carry any load
other than tools and accessories necessary for the operation of the
vehicle.
20
22
23
5
6
6
1
2
2
1
1
1
177
203
215
Government
Roadwork equipment – including local government
An exemption is granted to any motor vehicle or plough, bulldozer,
mechanical scoop or shovel, road grader, road roller or similar
machinery that is owned by a local council within the meaning of the
Local Government Act 1993 and which is used for the purposes of
road construction, road maintenance, road repair, removal of garbage
or night soil, bush fire fighting, civil defence work or to any roller,
lawn mower or similar machinery used solely or principally for the
rolling or maintenance of tennis courts, cricket pitches, lawns or
pathways.
Federal government departments
Any vehicle that is leased to a Commonwealth Authority as provided
under Section 16, Part 3, (2) (d) of Commonwealth Vehicles
(Registration and Exemption from Taxation) Act 1997 (Cth).
Concessions provided under Part 4, section 16 and 17 of the Motor
Vehicle Taxation Act 1988 (NSW)
Pensioners/concession cardholders/disadvantaged
Selected social security recipients
An exemption is granted for any motor vehicle owned by holders of
pensioner concession cards, Department of Veteran Affairs (DVA)
Totally and Permanently Incapacitated cards and DVA Gold War
Widow’s cards. Those pensioners must use the vehicle substantially
for non-business purposes.
E - 18
Budget Statement 2011-12
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Rural
Primary producers
Primary producer concessions include, for motor vehicles not greater
than 4.5 tonnes of gross vehicle mass, private rates rather than
business rates for cars and station wagons and 55 per cent of
business rates for trucks, tractors and trailers.
22
23
25
Minor Tax Expenditures (< $1 million)

A concessional rate of 55 per cent of business rates (or 30 per cent if outside the Sydney
metropolitan area, Newcastle or Wollongong districts) is applied to any motor vehicle that is
used solely or principally as a tow truck with a crane and hook

A concessional rate of 88 per cent is provided for mobile cranes used for private use

A concessional rate of tax is applied to any motor vehicle that is owned by a Livestock
Health and Pest Authority and is used solely for carrying out the functions of the board

A concessional rebate of $100 from vehicle registration is given to all apprentices registered
with the NSW Department of Education and Communities

A concessional rebate is given to small business owners on the cost of vehicle registration
for every new apprentice hired from 1 July 2007. The first year rebate is the vehicle’s
registration fee and weight tax. For the second and third years of the same apprentice’s
employment, the rebate covers the vehicle’s registration fee.
The following are exempt:

any motor vehicle that is used principally as an ambulance except government owned

motor vehicles used by the State Emergency Service except government owned

any motor vehicle on which a trader’s plate is being used in accordance with the
Road Transport (Vehicle Registration) Act 1997 (NSW) or the regulations under that Act

any motor vehicle that is owned by Aboriginal Land Councils

motor vehicles in the name of Consular Employees and Trade Missions.
Budget Statement 2011-12
E - 19
Drivers’ Licences
The benchmark tax rates in 2010-11 were $48 for a one-year licence, $115 for a three-year licence
and $153 for a five-year licence. The trend reflects the renewal cycle of five-year licences.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Pensioners/concession cardholders/disadvantaged
Selected social security recipients2
An exemption is granted to any licence holder who also holds a
pensioner concession card, Department of Veterans’ Affairs (DVA)
Totally and Permanently Incapacitated card, or DVA Gold War Widows
Card and who can provide evidence that their income is below a
certain level or can provide a DVA letter regarding their disability rate.
The vehicle owned by the licence holder must be used substantially
for social or domestic purposes.
55
38
40
Motor Vehicle Registration Fees
The benchmark is defined to be all vehicles intended for on-road use. The benchmark tax rate in
2010-11 is $56 for most motor vehicles, $244 for trucks with a mass of 5 tonnes or more and
$364 for articulated trucks.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Pensioners/concession cardholders/disadvantaged
Selected Social Security Recipients
Holders of pensioner concession cards, Department of Veterans’
Affairs (DVA) Totally and Permanently Incapacitated Cards, and DVA
Gold War Widows Cards (based on income or based on disability
pension rate) are exempt.
41
43
45
Minor Tax Expenditures (< $1 million)

Exemption for Mobile Disability Conveyance.
2
E - 20
Profile of estimates is due to the renewal pattern of three and five year driver’s licences.
Budget Statement 2011-12
Gambling and Betting Taxes
The benchmark for gaming machines in hotels and registered clubs is defined to be the rates of
taxation applying to hotels, which vary from 5.1 per cent to 47.3 per cent (annual rates from
1 July 2009) or 0.0 per cent to 50.0 per cent (annual rates from 1 July 2010) depending on the
level of annual profits from gaming machines.
The benchmark for totalisators is a tax rate of 19.11 per cent of player loss.
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
579
654
770
Gambling clubs
Club gaming machines
Poker machines installed in clubs registered under the Registered
Clubs Act 1976 are taxed at lower rates than poker machines installed
in hotels.
Minor Tax Expenditures (< $1 million)

A full rebate of tax is provided to racing clubs operating non-TAB Ltd pools.
Parking Space Levy
The benchmark is defined as off-street parking spaces in either Category one areas
(City of Sydney, North Sydney and Milsons Point business districts) or Category two areas
(Chatswood, Parramatta, St Leonards and Bondi Junction business areas).
For 2011-12 the benchmark parking space levy is $2,100 per space in Category one areas and
$740 per space in Category two areas. The benchmark rates are indexed annually to movements
in the Sydney CPI over the year to the previous March quarter.
Budget Statement 2011-12
E - 21
Major Tax Expenditures
2009-10
$m
2010-11
$m
2011-12
$m
Business
General exemptions and concessions in all regions
An exemption is granted to certain parking spaces in Category 1 and
2 areas, as identified in Section 7 of the Parking Space Levy
Regulation 2009. Broadly, the exemption captures parking spaces
intended for any of the following; bicycles and motor cycles, residents
of same or adjoining premises, use under the mobility parking
scheme, loading and unloading of goods or passengers, cranes and
other plant, overnight parking of emergency service vehicles, private
vehicles parked on land owned by councils, religious organisations or
bodies, charities or benevolent institutions, persons providing
services on a casual basis, unused casual parking or unleased tenant
parking.
37
39
41
9
9
10
Exempt parking spaces in Chatswood, Parramatta, St Leonards and
Bondi Junction
An exemption is granted to parking spaces for customers attached to
retail outlets, hotels, motels, clubs, restaurants, medical centres, car
hire and sales, repair and wash establishments and funeral parlours.
Detailed Estimates of Concessions
Details of concessions by function are shown below. Each concession is classified by type and a
distinction is drawn between major concessions ($1 million or more) and minor concessions
(less than $1 million).
Education
2009-10
$m
2010-11
$m
2011-12
$m
530
538
550
70
74
76
Students/young people
School Student Transport Scheme
The School Student Transport Scheme provides subsidised travel to
and from school for eligible students on government and private bus,
rail, and ferry services, long distance coaches and in private vehicles
where no public transport services exist.
TAFE fee concession
Fee exemptions are available to ATSI students and for students
enrolling in Special Access courses. Students with a disability
(or in receipt of a disability pension) are exempted from one course
fee and pay a concession fee per subsequent course enrolment in the
same year. Students in receipt of a Commonwealth benefit or
allowance pay a concession fee per course per year. Fees for
apprentices and trainees are capped according to eligibility for a
Commonwealth rebate.
E - 22
Budget Statement 2011-12
Minor Concessions (< $1 million)

The Department of Trade and Investment, Regional Infrastructure and Services sells certain
publications to schools and libraries at a lower than retail value.
Health
2009-10
$m
2010-11
$m
2011-12
$m
170
172
178
11
11
12
3
4
5
Pensioners/concession card holders/disadvantaged
Ambulance service for pensioners
Free transport by ambulance is provided for holders of pensioner
health benefit cards.
Outpatient Pharmaceutical Scheme for pensioners
Free or discounted pharmaceuticals are provided for holders of
pensioner health benefit cards.
Life Support and Medical Energy Rebates Scheme
The Department of Trade and Investment, Regional Infrastructure and
Services funds a rebate for energy costs for eligible recipients and
costs associated with certain life support systems.
Social Security and Welfare
2009-10
$m
2010-11
$m
2011-12
$m
Charitable organisations
Charitable goods transport subsidy
Charitable goods transport subsidy provides reimbursement to 18
charitable organisations for the cost of transporting miscellaneous
goods such as donated medicines, trauma teddies, non-perishable
food, disability aids, linen, blankets and recycled clothing.
3
3
2
431
432
438
44
48
43
Pensioners/concession card holders/disadvantaged
Public transport concessions
Pensioners, seniors, welfare beneficiaries and students travel for less
than full fare on bus, rail, taxi and ferry services (excluding School
Student Transport Scheme).
Home and Community Care (HACC) – Transport Component
The HACC program provides community care services to frail aged
and younger people with disabilities, and their carers. This
component of the HACC program is the transport component
provided by community transport providers and administered by the
Department of Transport.
Budget Statement 2011-12
E - 23
Social Security and Welfare
2009-10
$m
2010-11
$m
2011-12
$m
Community Transport Program
Subsidises transport to people that have little or no access to
conventional transport due to physical conditions, significant social
disadvantage or geographic isolation.
4
4
5
4
4
5
5
6
4
Community interpreting and translation service
The Community Relations Commission funds translation and
interpreting services in criminal and family courts for holders of
Pensioner Concession Cards.
Spectacles program
Free spectacles are provided to people with visual impairment who
have low income and assets.
Housing and Associated Amenities
2009-10
$m
2010-11
$m
2011-12
$m
Charitable organisations
Crown Land rent concessions
Rebates from market rent may be granted in certain circumstances
where tenure holders are eligible for concessions (eg eligible
pensioners, charitable or non-profit community service, sporting or
recreational organisations).
22
21
21
Exempt properties water rate concession
The Department of Finance and Services (the concession was
previously administered by the Department of Environment, Climate
Change and Water) funds a partial discount on Sydney Water
Corporation and Hunter Water Corporation charges to owners of
properties used by non-profitable community services and amenities
(principally metropolitan councils, religious bodies and charities):

Sydney Water Corporation
11
13
15

Hunter Water Corporation
2
2
2
16
5
2
Individuals
Backlog sewerage connection fee concession
The Department of Finance and Services (the concession was
previously administered by the Department of Environment, Climate
Change and Water) funds Sydney Water Corporation to connect
selected un-sewered areas to the sewerage network, based on public
health and environmental priorities.
E - 24
Budget Statement 2011-12
Housing and Associated Amenities
2009-10
$m
2010-11
$m
2011-12
$m
Pensioners/concession card holders/disadvantaged
Local council rates concession
Local council rates are reduced for holders of Pensioner Concession
Cards.
77
74
76
110
121
132
10
10
11
87
104
152
11
14
14
Pensioner water rate concession
The Department of Finance and Services (the concession was
previously administered by the Department of Environment, Climate
Change and Water) funds Sydney Water Corporation and Hunter Water
Corporation to provide Pensioner Concession Card holders a rebate
for their water and sewerage charges.

Sydney Water pensioners receive a 100 per cent discount on the
fixed water service charge, 83 per cent discount on the sewerage
charge and 50 per cent discount on the stormwater service
charge.

Hunter Water pensioners receive a rebate of up to $239 per
annum, which will increase to approximately $250 per annum in
2012-13. The Environmental Improvement Charge is also waived.
Low Income Household Rebate
The Department of Trade and Investment, Regional Infrastructure and
Services funds an energy rebate for holders of eligible Pensioner
Concession and Health Care Cards. From 2011-12 eligible customers
will receive a rebate of $200 per annum on their energy bills.
Energy Accounts Payment Assistance Scheme
The Department of Trade and Investment, Regional Infrastructure and
Services provides financial assistance (including gas and electricity)
for consumers in financial hardship.
Minor Concessions (< $1 million)

The Department of Finance and Services (the concession was previously administered
by the Department of Environment, Climate Change and Water) funds a discount on
Sydney Water Corporation’s septic pump-out fees to residences in the Blue Mountains that
are residential-zoned and not connected to the sewerage network.

Sydney Water Corporation provides concessions through hardship and low income schemes
for customers in financial hardship.

The Department of Trade and Investment, Regional Infrastructure and Services provides a
reimbursement to Country Energy for delivering pensioner rebates to Broken Hill eligible
pensioners.
Budget Statement 2011-12
E - 25
Recreation and Culture
2009-10
$m
2010-11
$m
2011-12
$m
Pensioners/concession card holders/disadvantaged
Free or discounted entry to National Parks
Holders of Pensioner Concession Cards, Seniors, Volunteers and
Community Groups receive free or discounted entry to National Parks.
8
9
10
1
1
1
<1
<1
1
Concessional vessel registration
NSW Maritime provides a 50 per cent concession on recreational
vessel registration to holders of Pensioner Concession Cards and
Repatriation Health Cards.
Museum of Applied Arts and Sciences
Concessional admission charges for children, students, seniors and
the unemployed. Country residents are entitled to a concession on
the Museum’s household membership. Concessional rates for venue
hire apply to community or charitable groups.
Minor Concessions (< $1 million)
Pensioners/concession card holders/disadvantaged
NSW Maritime
Concessional recreational boating licence and private mooring licence for
pensioners.
Royal Botanic Gardens and
Domain Trust
Concessional admission charges for entry to Tropical Centre, Sydney for
Historic Houses Trust of NSW
Concessional admission charges for unemployed, children, pensioners,
pensioners and seniors card holders.
seniors and students.
Australian Museum
Concessional or reduced admission charges to students, the unemployed
and holders of pensioner health care cards, free general admission to
seniors card holders, disadvantaged school students, accompanying
adults with school groups, Museum Society members and children under
five years old.
Sydney Opera House
Concessional charges on guided tours for children, pensioners, seniors,
students and school group tours, and concession tickets are available to
many Sydney Opera House productions for pensioners/seniors, full time
students and children.
Art Gallery of NSW
Concessional admission charges for entry to special exhibitions for the
unemployed, children, pensioners, seniors, students and school groups.
E - 26
Budget Statement 2011-12
Agriculture, Forestry and Fishing
2009-10
$m
2010-11
$m
2011-12
$m
Pensioners/concession card holders/disadvantaged
Fishing licence concessions
Fishing licence concessions are provided to pensioners and children.
4
4
4
Minor Concessions (< $1 million)

Forests NSW provides pensioner discounts on firewood permits for the collection of
firewood and discounts to charitable organisations on the purchase of Christmas trees.
Budget Statement 2011-12
E - 27